About Gilead Sciences, Inc.
Gilead Sciences has biotech balms for infectious diseases, including hepatitis, HIV, and infections related to AIDS. The company's drug franchise includes Truvada, an oral formulation indicated in combination with other antiretroviral agents for the treatment of HIV-1 infection in certain patients. The company co-promotes another HIV treatment, called Atripla, in the US and Europe with Bristol-Myers Squibb (BMS). Other products on the market include AmBisome, used to treat systemic fungal infections such as those that accompany AIDS or kidney disease. Beyond HIV/AIDS, Gilead also markets Hematology and Oncology medicines and the Yescarta CAR-T cell therapy for cancer. About three-quarters of its sales are in the US.
Gilead primarily focuses on discovering, developing and commercializing innovative medicines in areas of unmet medical need, producing treatments for HIV, liver diseases including hepatitis B and hepatitis C, and cancer. Its main source of revenue continues to be its antiviral franchise, which accounts for about 75% of product sales and primarily consists of HIV medications. Biktarvy is Gilead's top-selling drug, accounting for about 20% of sales.
Aside from the Atripla partnership with BMS, Gilead has collaborations with other companies including Japan Tobacco, which promotes HIV drugs.
Gilead continues to advance its R&D pipeline; the company had about 105 active clinical studies in 2019. It had more than 25 clinical trials in Phase III.
The company's portfolio of nearly 25 marketed products contains a number of firsts, such as the first complete treatment regimens for HIV and chronic hepatitis.
Gilead relies on the US market for a significant portion of its revenue, about 75%. Europe accounts for more than 15% of revenue, while other international markets provide about 10%.
Gilead is based in Foster City, California and it has R&D facilities in Emeryville, Oceanside and Santa Monica, California; Gaithersburg, Maryland; Edmonton, Canada, Seattle, Washington, and Amsterdam, Netherlands. It has manufacturing sites in California, Canada, and Ireland. The company's commercial operations are in approximately 35 countries around US and international.
Sales and Marketing
Gilead products are marketed through commercial teams and/or in conjunction with third-party distributors and corporate partners. The commercial teams promote products through direct field contact with physicians, hospitals, clinics and other healthcare providers. The company generally grant third-party distributors the exclusive right to promote the product in a territory for a specified period of time. Gilead sell and distribute its products in Europe and countries outside the United States where the product is approved, either through commercial teams, third-party distributors or corporate partners.
Three wholesale distributors -- McKesson, Cardinal Health, and AmerisourceBergen -- account for over 85% of Gilead's US sales.
After peaking at $32.6 billion in 2015, Gilead's revenue dropped about a third to $21.1 billion in 2018 and recovered by about 1% in 2019.
Total revenues increased to $22.4 billion and total product sales increased to $22.1 billion in 2019, compared to $22.1 billion and $21.7 billion in 2018, respectively, primarily due to higher sales of its HIV products, partially offset by lower sales of Ranexa and Letairis and HCV products.
Net income of Gilead changed to $5.4 billion in 2019, compared to $5.5 billion in 2018, primarily due to pre-tax up-front collaboration and licensing expenses of $3.9 billion related to its collaboration with Galapagos, partially offset by the net favorable fluctuation in tax effects of intra-entity intangible asset transfers to different tax jurisdictions and an increase in net unrealized gains from equity securities.
The company had $11.6 billion in cash and equivalents in 2019 compared to $17.9 billion in 2018. Operations generated $9.1 billion in 2019, while investing activities provided $7.8 billion and financing activities used $7.6 billion.
Gilead's focus is to create possibilities for patients through scientific breakthroughs and innovation, by leveraging pillars of a durable core business, existing pipeline opportunities and strategy to drive additional growth. The company's strategy includes ambitions and priorities, which enables the company to achieve those ambitions. The strategic ambitions define what success looks like over the next decade and are summarized as (i) bring 10+ transformative therapies to patients by 2030; (ii) be the biotech employer and partner of choice; and (iii) deliver shareholder value in a sustainable and responsible manner. Gileads's strategic priorities reflect how the company will deliver those ambitions: (i) expand internal and external innovation; (ii) strengthen portfolio strategy and decision making; (iii) increase patient benefit and access; and (iv) continue to evolve our culture.
In 2020, the company expects underlying growth in its base business, which is expected to offset the full-year impact of cardiopulmonary products loss of exclusivity, which occurred in 2019, and the initial generic version of Truvada in the United States in late 2020. The company will also continue to invest to support the growth of Biktarvy, Descovy for PrEP launch, preparation for competitive launches of filgotinib in RA in the United States, Japan and Europe, and continued investments in pipeline, cell therapy and external partnerships. Gilead's overall plan is now guided by the newly established corporate strategy that provides focus and guides resource and capital allocation priorities. The company expect data read-outs in 2020 including filgotinib for ulcerative colitis, KTE-X19 for acute lymphoblastic leukemia (ALL), axicabtagene ciloleucel CD19 for indolent B-cell non-Hodgkin lymphoma (iNHL) and second line diffuse large B-cell lymphoma and GLPG-1972 for osteoarthritis. To further augment the product pipeline, the company continue to pursue opportunities for collaborations, partnerships and strategic investments that fit into its long-term strategic plan.
Mergers and Acquisitions
In 2020, Gilead Sciences, Inc. completed the previously announced transaction for Toro Merger Sub, Inc., a wholly owned subsidiary of Gilead, to acquire US-based Forty Seven, Inc. for $95.50 per share, net to the seller in cash, without interest, or approximately $4.9 billion in the aggregate. As a result of the completion of the merger, Forty Seven has become a wholly owned subsidiary of Gilead and the common stock of Forty Seven will no longer be listed for trading on the Nasdaq Global Select Market.
Dr. Michael Riordan started Gilead Sciences in 1987, backed by venture capital firm Menlo Ventures. The name was derived from the Biblical phrase "Is there no balm in Gilead?" In 1990, Glaxo Wellcome (now GlaxoSmithKline) agreed to fund Gilead's research into code-blocking treatments for cancer. Gilead went public in 1992.
333 Lakeside Dr
Foster City, CA 94404-1394
Phone: 1 (650) 574-3000
Employer Type: Publicly Owned
Stock Symbol: GILD
Stock Exchange: , NASDAQ
Chairman: John C. Martin
President and CEO: John F. Milligan
COO: Kevin Young
Employees (This Location): 289
Employees (All Locations): 11,800